Stocks of the world’s largest cosmetics companies loreal The company soared as much as 10% after the bell Wednesday as the beauty market shows no signs of slowing down after reporting better-than-expected quarterly growth.
Organic sales rose 7.6% to 12.2 billion euros ($14.3 billion) in the first quarter, compared with analysts’ expectations of about 3% to 4%. Excluding the impact of one-time items, growth for the quarter was 6.7%.
CEO Nicolas Hieronymus said: “We not only outperformed the still dynamic beauty market, but also accelerated our market share growth around the world.”
“Our e-commerce leadership allows us to double down on our winning channels with impressive results across all regions, especially emerging markets,” he added in a statement. “The recovery in the two largest economies, the US and China, continued in the second half of 2025, and we outperformed the market in both countries.”
Barclays analysts said underlying growth was “very impressive”. “The 4% growth in the cosmetics market shows no signs of slowing down,” they said. “Its[L’Oréal’s]Beauty Stimulus Plan is delivering even stronger market share gains during volatile times.”
The stock last closed up 9%, marking its biggest single-day gain since November 2008.
L’Oreal shares had fallen 2% in the last 12 months as of the open on Thursday.
L’Oréal operates in industries bordering both consumer goods and luxury goods, and has proven resilient to macroeconomic challenges and general sector downturns.
As former growth engines cool and rising costs of living make consumers more selective, consumer goods companies are narrowing their focus and strategically reevaluating their portfolios.
Major consumer goods company unilever The company recently announced it would sell its food business to McCormick and spin off its ice cream division last year to focus on higher-growth health and beauty care, which includes brands such as Dove, Dermalogica and Treseme.
Meanwhile, L’Oréal last month kering Gucci owner’s beauty division Beauté receives 4 billion euros.
Luxury brands have seen uneven recovery after the boom ended in 2022. Analysts have warned of a widespread “lull” in the industry’s recovery, with sales hit by the Middle East conflict.
L’Oréal, which owns its namesake brand as well as hair products Kérastase, Garnier and New York’s Professional Makeup, said it was seeing growth in all its divisions, spanning cosmetics, hair care, skin care and fragrance.
Professional products, including hair care, led growth in the quarter, up 13.1% year-on-year, despite being the group’s smallest unit.
Analysts at Jefferies said L’Oréal performed well in key regions: the US, Europe and China, the latter “despite inventory resets in the consumer sector and continued disruption in travel retail.”
